Vehicle sales skid as consumers play safe

National Centre for Statistical Information statistics showed that only vehicle rentals witnessed a growth in registrations

National Centre for Statistical Information data showed that between January and May this year, only 22,579 new private vehicles were registered, which reflects a 22.7 per cent drop, compared with 29,208 new private vehicles registered during the same period last year

MUSCAT: Oman recorded a drop in new vehicle registrations this year as uncertainty prevailed in consumer buying sentiments.

NCSI (National Centre for Statistical Information) data showed that between January and May this year, only 22,579 new private vehicles were registered, which reflects a 22.7 per cent drop, compared with 29,208 new private vehicles registered during the same period last year.

“There is a slowdown since last year in vehicle sales due to the difficult economic situation. Most expats are very careful when investing a large sum so a lot of time goes into planning.

“We have seen a drop in sales, but Ramadan has made it better,” Suresh Nair, marketing manager at Towell Auto, said.

Statistics also showed that new vehicle registrations dropped by 37.2 per cent in the commercial category, 34.5 for taxi, 3 for motorbike, 32.4 for diplomatic, 57.1 for tractors and 18.9 for driving school, while only vehicle rentals witnessed a growth in registrations.

“It is uncertainty that is affecting a lot of decision making so people are staying away from these large investments. The rise in car rentals shows that people are unsure about their jobs and may be opting for car rentals, but I think the main reason for rental rise is the rise in tourism. Then there are better public transport facilities, which play a role in the changing consumer pattern. All of this has affected customers buying new cars,” Nair said.

According to NCSI, the number of tourists in Oman are rising this year and Salalah has witnessed a more than three-fold growth in the number of tourists during Khareef until now, compared with last year.

“There has been a rise in the number of tourists renting our vehicles since the start of this year, compared with 2016; however, the rise has not been very significant. I still believe the rise in rentals in mainly due to uncertainty and people not sure about how long they will keep their jobs,” Shabbir Boxwala, general manager at Budget rent-a-car explained.

An official at a top vehicle dealership added that the automobile market in Oman is expected to stabilise later in 2018 and by 2020 there is likely to be strong demand growth, but this year will remain a tough financial year for car companies.